UK unemployment rises for first time since Brexit vote

Britain has registered its first rise in unemployment since the Brexit referendum in 2016.The increase in the ...

Posted: Feb 21, 2018 3:46 PM

Updated: Feb 21, 2018 3:46 PM

Britain has registered its first rise in unemployment since the Brexit referendum in 2016.

The increase in the jobless rate to 4.4% surprised economists, and the pound dropped by about 0.6% against the dollar as investors pondered whether the new data could delay the next rise in UK interest rates.

In the three months to December, 46,000 people were added to the unemployment tally, representing the biggest increase since early 2013. It took the total to 1.47 million.

At the same time, British companies continue to create new jobs. There were 823,000 vacancies in the three months to January 2018, 70,000 more than at the same time last year.

"The significant number of unfilled vacancies means that the problem is more about not having the right workers available rather than the economy not creating enough jobs," said Yael Selfin, chief economist at KPMG in London.

Japan warned last month that its banks, automakers and other companies could quit the U.K. if Brexit goes badly.

To add to the uncertainty felt by British consumers, Wednesday's jobs data showed there were 901,000 people working on so-called "zero-hours contracts," casual arrangements that allow employers to hire without guaranteeing hours of work. That's 20,000 more than in June 2017.

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